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An International Comparison of Technology Adoption and Efficiency: A Dynamic Panel Model

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  • Patrick T. Hultberg
  • M. Ishaq Nadiri
  • Robin C. Sickles

Abstract

We propose a dynamic model that estends the neoclassical growth model by including technology diffusion and possible inefficiency caused by institutional rigidities. We use alternative panel data methods to estimate the model for three regions: Europe, Latin America and East Asia. Our results strongly indicate that the technology gap to the leader nation is a significant source of growth, but that regions differ in their absorption capability. In addition, countries show large heterogeneity. When combining the country-specific effects with regional absorption capabilities, we obtain robust "efficiency" results for each country. The estimated efficiency levels are consistent with common beliefs and significantly explained by institutional variables such as bureaucratic efficiency and political and civil rights.

Suggested Citation

  • Patrick T. Hultberg & M. Ishaq Nadiri & Robin C. Sickles, 1999. "An International Comparison of Technology Adoption and Efficiency: A Dynamic Panel Model," Annals of Economics and Statistics, GENES, issue 55-56, pages 449-474.
  • Handle: RePEc:adr:anecst:y:1999:i:55-56:p:449-474
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    Cited by:

    1. Robin C. Sickles & Jiaqi Hao & Chenjun Shang, 2014. "Panel data and productivity measurement: an analysis of Asian productivity trends," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 12(3), pages 211-231, August.
    2. Dimitris Margaritis & Rolf Färe & Shawna Grosskopf, 2007. "Productivity, convergence and policy: a study of OECD countries and industries," Journal of Productivity Analysis, Springer, vol. 28(1), pages 87-105, October.
    3. Sickles, Robin C. & Hao, Jiaqi & Shang, Chenjun, 2015. "Panel Data and Productivity Measurement," Working Papers 15-018, Rice University, Department of Economics.
    4. Boussemart, Jean-Philippe & Briec, Walter & Cadoret, Isablelle & Tavera, Christophe, 2006. "A re-examination of the technological catching-up hypothesis across OECD industries," Economic Modelling, Elsevier, vol. 23(6), pages 967-977, December.
    5. Aditi Bhattacharyya, 2012. "Adjustment of inputs and measurement of technical efficiency: A dynamic panel data analysis of the Egyptian manufacturing sectors," Empirical Economics, Springer, vol. 42(3), pages 863-880, June.
    6. Ana Lozano-Vivas & Jesús Pastor, 2006. "Relating Macro-economic Efficiency to Financial Efficiency: A Comparison of Fifteen OECD Countries Over an Eighteen Year Period," Journal of Productivity Analysis, Springer, vol. 25(1), pages 67-78, April.

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